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Investor Presentation Vancouver & Toronto Roadshow: June 2018 1 - - PowerPoint PPT Presentation
Investor Presentation Vancouver & Toronto Roadshow: June 2018 1 - - PowerPoint PPT Presentation
Investor Presentation Vancouver & Toronto Roadshow: June 2018 1 Disclaimer Certain statements contained in this presentation, and in certain documents incorporated by reference in this presentation, constitute "forward-looking
Disclaimer
Certain statements contained in this presentation, and in certain documents incorporated by reference in this presentation, constitute "forward-looking statements". All statements other than statements of historical fact contained in this presentation, including, without limitation, those regarding Osino Resources Corp.’s (the “Corporation‘”) future financial position and results of
- perations, strategy, plans, objectives, goals and targets, future developments in the markets where the Corporation participates
- r is seeking to participate, and any statements preceded by, followed by or that include the words "believe", "expect", "aim",
"intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Corporation's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to, those discussed under "Risk Factors" in the prospectus to which this presentation relates. Management provides forward-looking statements because it believes they provide useful information to readers when considering their investment objectives and cautions readers that the information may not be appropriate for other purposes. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements and
- ther cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments
will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Corporation. These forward-looking statements are made as of the date of this presentation and the Corporation assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The forward-looking statements in this presentation are based on numerous assumptions regarding the Corporation's present and future business strategies and the environment in which the Corporation will operate in the future, including assumptions regarding expected yields, future prices and business and operating strategies. Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward- looking statements contained herein, including risks associated with the Corporation, such as lack of revenue, risks associated with the Corporation's business, such as the failure to obtain or maintain necessary licenses, and risks associated with the common shares of the Corporation, such as stock market volatility. .
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About Osino Resources Corp.
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Emulating our prior success with Auryx Gold Corp., Osino founders aim to create value through consolidation, exploration & discovery. We see Osino’s core value drivers as follows:
- Experienced team with history of delivering value
- Quality assets & jurisdiction in Namibia’s highly prospective Damara gold belt
- Excellent shareholders with long term vision
Summary of Recent Activities
- Corporate
- RTO on track: expected first day of trade ~28 June 2018 Symbol: TSX-V: OSI
- ~56m shares out @ 0.48cps, no warrants
- Completed CAD3.1m financing incl. RCF
- Expected spend until year-end ±CAD3m
- ±CAD6m cash balance (June 2018) after warrant exercise & RTO
- Technical
- ± 2,900m RC & DD drilling completed since Apr 2018
- Awaiting assays for last 5 holes & interpretation of results
- Intersected wide zones of low grade mineralisation in several holes
- No bonanza grades but we are very encouraged by the large size of the
mineralising system and its scale potential
- Mineralisation style analogous to Otjikoto with 1–10cm scale veinlets parallel to
foliation over wide areas (sheeted veins?)
- Key drivers in orogenic belts: a) source rock b) pathway c) traps – so far 2 out of 3
- Airborne geophysics completed, encouraging results, will feed into next drill program
- Next round of drilling – August 2018
Founders & Directors
Heye Daun (CEO, Co-founder & Director): Mining engineer with +20 years of experience with top-tier mining co.’s and financial groups. Former President & CEO of Ecuador Gold & Copper Corp. overseeing C$200m merger with Odin Mining. Co-founder
- f Auryx Gold Corp. Co-lead Auryx through IPO, capital raising, project development to C$180m sale to B2
Gold Corp. Prior to that with Nedbank Capital and Old Mutual Investment Group. First 10 years of career with Rio Tinto, Anglo Gold & Gold Fields, building & operating mines in Africa. Alan Friedman (President, Co-founder & Director): South African-trained lawyer and public markets entrepreneur. Involved with North American public markets for >15 years. Played integral role in acquisitions, financings & go-public transactions for many resource companies onto TSX and AIM. Co-founder & Director of TSX-V listed Eco (Atlantic) Oil and Gas Ltd. and Auryx Gold Corp. Director of the Canada-Southern Africa Chamber of Business. Dave Hodgson (Proposed Non-Executive Director): Dave Hodgson formerly held a series of senior and executive positions over three decades with the Anglo American and De Beers group of companies, and also held the post of Chief Operating Officer of AngloGold Ashanti from November 2001 through to his retirement in April 2005. In addition, he has held non-executive directorships at Moto Gold Mines Limited, Uranium One Inc., Goliath Gold Mining Limited, Auryx Gold Corporation, Montero Mining and Exploration Limited, and Acacia Mining. Lazarus Shigwedha (Proposed Non-Executive Director): Lazarus is a Namibian-born emerging markets and frontier portfolio manager with Investec Asset Management in Cape Town. He has deployed capital into emerging markets over the last 12 years, particularly into cement, infrastructure and resources. He has broad investment experience across sectors such as Banking, FMCG, Telcos and REITS’s in jurisdictions such as Uganda, Nigeria, Kenya, South Africa, Egypt, Namibia, South East Asia and South America. Lazarus is a Namibian citizen. 5
Founders Track Record
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Formation Acquisition Advancement Exit Ecuador Gold & Copper Corp. Heye Daun appointed CEO in 2015, tasked with company turn-around & generating options for investors Assessed company & assets, built trust with investors, developed & executed turn-around strategy Raised US$3m in convertible debt & equity, restructurd balance sheet, settled range of legacy issues, prepared EGX for sale Successfully sold EGX to Lumina Gold through $200m merger Auryx Gold Corp. Heye Daun & Alan Friedman co-found Auryx and list on TSX via RTO in 2010 Acquire Otjikoto gold deposit in Namibia from Vale, through non-core disposal process Raised $85m in equity, built-
- ut team, expanded
resource, completed PEA Successfully sold AYX to B2 Gold Corp for $180m, now in production ~150kozpa Afriore Ltd. Alan Friedman was part of the acquisition team that acquired the Akanani Platinum Project Expanded resource, completed technical work to prove downdip extension of world-class SA platinum deposit Successfully sold Afriore to Lonmin Plc, world's 3rd largest PGM producer for $450m Eland Platinum Ltd Bright Group co-founder of Eland Platinum, Heye Daun part of initial funding consortium & co-investor with Bright Negotiated acquisition of undeveloped, non-core PGM resource from Anglo Raised >$100m in debt and equity from South African capital markets and commenced with project development Successfully sold company to Xstrata Plc for $1bn
Key Management
7 Dave Underwood (VP Exploration) BSc Geol (Hons) Dave has 26 years of broad exploration experience in Africa and beyond. He spent his early career years with De Beers and Anglo American including 6 years in Tanzania and Kenya exploring for gold and base
- metals. The last 12 years he worked as an independent exploration consultant in exploration, target
generation, evaluation and due diligence programmes for Newmont, AngloGold Ashanti, Silver Bull Resources, Roxgold and others. Commodities include gold, silver, base metals, uranium, manganese and iron ore. Dave is a Fellow of the Society of Economic Geology, and a Registered Professional Scientist with the SACNSP. Jon Andrew (Country & Exploration Manager) BSc Geol (Hons) Jon is a geologist with more than 20 years’ experience in exploration and mining geology. His career has been focussed on the Africa and Middle East regions and includes diverse experience in precious, base and rare metals, industrial minerals and coal. He has held exploration manager and senior consulting positions with several major and junior mining companies listed on all major international stock exchanges. Emmanuel Shilongo (Exploration Geologist) MSc (Applied Geology)
- Mr. Emmanuel Shilongo is an Exploration Geologist, and currently oversees all the company’s field
- activities. He has 9 years’ experience in mineral exploration mainly in Namibia. Most of Emmanuel’s
experience has been in uranium focused on both primary and secondary uranium mineralisation, rare earth metals and copper exploration. Prior to joining Osino, Emmanuel held positions as Senior Mineral Exploration Geologist at TSX listed Forsys Metals Corp’s flagship project - the Valencia Uranium Development Project, at Namibia Uranium Corporation and at the Shali Group of Exploration Companies.
Namibia Tectonic Setting
8 Source: Vollgger et al., 2015
- Navachab & Otjikoto initially seen as
- ddities. Geological controls recently
better understood
- Geological controls defined = other
targets can be identified and tested
- Multi-phases of mineralization =
large, long-lived mineralizing systems
- Interpretation of the Damara belt
identifies multiple NE trending structures
- Structures are deep seated, laterally
continuous, and formed at same time by the same process
- Significant regional exploration
potential
Osino Licenses relative to Major Structures
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Focus Area 2: New Target Generation Focus Area 2: Otjikoto East Target Definition Focus Area 1: Khan River Gold Corridor (KRGC) & Goldkuppe: Discovery of a new regional trend
Osino Licenses relative to Namibia Au Peers
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- Large & growing license position
~5,700km2 owned or under option
- Mostly under-explored or no
exploration at all
- 2 world-class Au deposits
- Navachab (>5moz) in production
- Otjikoto (>3moz) in production
Following slide
Khan River Au Corridor - an emerging Au trend
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next slide
Rank Target Name 1 Goldkuppe 2 Twin Hills 3 Wedge 4 Oasis 5 Goldkuppe Extensions 6 Okapawe 7 Okapawe Dam 8 Dropstone 9 Albrechts Group 10 Twin Hills SW Extensions 11 Shilongo Splay 12 Etekero 13 Puff Adder 14 OJW 15 KB Anomaly 16 OK Anomaly 17 Nuchomis Anomaly 18 Omagonde Anomaly 19 Khan River Fault Zone 20 Kalapuse 21 Epako 22 Domes 23 Kamapu 24 SHN (Fight Club) 25 SHK (Fight Club) 26 (Otjikoto) Far East
- Discovered major regional structure
with multiple targets during 2017
- Large Au system over >25km strike
- Drill-testing various targets Q2/Q3 2018
- Working to consolidate & extend
Khan River Fault Zone
Khan River Fault: 25km mineralised Au trend
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~2.5km Twin Hills Prospect Drilling Q2 2018 Okapawe Prospect Drilling Q2 2018 Navachab Gold Mine For Size Comparison 100ppb geochem contour
Goldkuppe Discovery & Extension Targets
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1km Grid squares
GK Extension targets Goldkuppe Oasis & Wedge targets
- Au discovery with significant
historical exploration work
- 15,000m drilled & C$5m spent
- 2017 Structural review: better
understanding of geological controls
- Recent interesting results
south of Goldkuppe (Oasis & Wedge targets)
Otjikoto East - Recent Progress
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Otjikoto Gold Mine Producing ~200kozpa B2 Gold Corp. Airborne geophysics completed June 2018 Detailed interpretation of recently acquired geophysical dataset
- 100km strike length in same host stratigraphy
as Otjikoto & Navachab
- Largely untested due to cover
- Osino using successful western Australian
techniques to see through cover
- Recently completed airborne geophysics
- 2 gold anomalies discovered to date
- RAB test drilling to commence late 2018
Exploration Program
- Systematic exploration to expand & advance 26 targets & generate new ones
- 2018 budget of ~CAD6m (Jan to Dec-18) incl. G&A (Scalable subject to results & finance)
- Expect significant news flow
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# Property Task Spend CADm Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 Twin Hills Drilling (RC/DD) 0.593 Drilling 2 Okapawe Drilling (RC/DD) 0.198 3 Wedge Drilling (RC/DD) 0.198 4 Shilongo Splay Sampling 0.329 Sampling 5 Khan River Fault Zone Sampling 0.329 Sampling 6 Shilongo/Khan River Drilling (RAB) 0.079 Drilling 7 OJW & OJW Splay Sampling 0.263 8 Otjikoto East Sampling & Drilling 1.397 Sampling Drilling 9 Otjikoto Far East Sampling 0.132 Sampling 10 Wilhelmstal Sampling & Drilling 0.388 Sampling 11 Etekero Sampling & Drilling 0.105 Drilling 12 Kalapuse Sampling 0.066 13 Regional Targets Sampling 0.198 Sampling Various Properties Airborne Mag/Rad 0.329
- Airb. Mag/Rad
subtotal Exploration Spend 4.011 Sampling subtotal Corporate G&A (incl. RTO expenses) 1.000 Drilling Total Osino 2018 Budget 5.011 Airborne Mag/Rad 2018
RTO Progress & Cashflows
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- RTO Meeting Date: 22 June 2018
- CAD3.1m concurrent financing into PrivateCo completed (at 25% premium to last financing)
- Expected start of trading 29 June 2018: Ticker TSX-V: OSI
- Next financing envisaged ~ H2 2018 (subject to market, drill success & key shareholders)
Cash at hand (estimated end Dec-17) CADm 4,0 Proceeds from Mar-18 financing CADm 3,2 Cash in shell CADm 0,4 estimated Cash upon warrant exercise CADm 1,5 exercised May-June 2018 Exploration / G&A Expenditure CADm (3,0) estimated H2 2018 expenditure Estimated cash end Jun-18 CADm 6,1
Share Structure (post RTO)
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Shares shares outstanding m shares 56,3 Warrants m shares
- exercised May/June 2018
Shares Outstanding (FD) m shares 56,3 ESOP Options m shares 3,9 exercisable at CAD/share 0.380 Valuation CADm 27,0 last financing at CAD0.48/share Cash in treasury (end June 2018) CADm 6,1 estimated Enterprise Value (end June 2018) CADm 20,9 estimated Osino Share Exchange Ratio * ~5.4318 estimated *giving effect to the RTO
Ownership (post RTO)
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Pro-forma Share Summary Shares Price Value Ownership fully diluted, post RTO m CAD/sh CADm % Ross Beaty 11,2 20% Osino Founders & Associates 7,9 14% Resource Capital Funds 4,6 8% Powerone Group 4,6 8% Trimark & Associates 3,9 7% Lumina Group Associates 3,2 6% Romulus Resources (RTO Shell) Holders 3,2 6% Other (incl. friends & family) 16,9 30% Total shares o/s (FDITM, post RTO) 55,5 0,478 26,5 100% ESOP 3,9 7,0% * Share Exchange Ratio = 5.4318 ** 8.8cps pre-RTO is thus equivalent to ~0.48cps post RTO
Why Us ?
- Clear strategy with multiple upcoming catalysts
- Solid team with history of delivering value & proven ability to execute
- Growing pipeline of opportunities
- Excellent shareholders
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Thank you.
Photo credit: B2 Gold Corp.
Osino Resources Corp. 181 Bay Street, Suite 320 Brookfield Place, Toronto Ontario, Canada M5J 2T3 hdaun@osinoresources.com +27 (82) 566 4494
For more information contact: Heye Daun, CEO 11th Floor Convention Tower Heerengracht, Cape Town 8001 Tel: +27-21-4182525 www.osinoresources.com
Appendix
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Our Core Competence
Leveraging skills & expertise to acquire & progress gold assets with scale potential in
- Namibia. We see our core competencies as:
- Identify and evaluate quality prospects
- Acquire assets from government & vendors through proprietary relationships
- Advance projects through systematic execution & application of best-practice
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Osino License Position & Target Summary
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Exploration Stage Rank Target Name Status Advanced Target 1 Goldkuppe Significant historical and current drilling 2 Twin Hills 3 Wedge 4 Oasis 5 Goldkuppe Extensions 6 Okapawe 7 Okapawe Dam 8 Dropstone 9 Albrechts Group 10 Twin Hills SW Extensions 11 Shilongo Splay 12 Etekero 13 Puff Adder 14 OJW 15 KB Anomaly 16 OK Anomaly 17 Nuchomis Anomaly 18 Omagonde Anomaly 19 Khan River Fault Zone 20 Kalapuse 21 Epako 22 Domes 23 Kamapu 24 SHN (Fight Club) 25 SHK (Fight Club) 26 (Otjikoto) Far East Grassroots / Conceptual Targets Follow-up required prior to drill testing (if warranted) Newly acquired or awaiting permitting / access prior to initial work Drill-tested, further work required / assay results pending Follow-up & Drill- tested Targets Identified Targets
Focus Area 1 – see next slide for detail Focus Area 3 Focus Area 2
- 5,700km2 license position in
- 3 project areas at different
stage of advancement
- 26 exploration targets
Osino’s Inspiration - The Auryx Gold Story
1999 2008 2009 2010 2011 2012 2013 2014 Vale/ARM JV initiates Otjikoto divestment process Auryx named preferred bidder for Otjikoto after competitive process Auryx closes Otjikoto transaction through US$49m equity financing and listing on TSX Auryx closes US$34m bought-dealfinancing & aggressively expands exploration B2 Gold commences w ith project construction Auryx completes Project PEA & commences w ith mine permitting Auryx starts trading on NSX (Namibia) US$160m B2 - Auryx merger transaction closes Auryx discovers Wolfshag Zone, transforms project economics Otjikoto Project discovery by Teal Minerals' predecessor, Avmin. B2 Gold expands project to 200kozpa producer through aggressive exploration & scalable mill layout Formation & initial financing of BC Ltd, pre-cursor to Auryx, aiming to acquire gold projects in Africa B2 Gold pours first gold at Otjikoto Project now valued at US$750m in B2 Sum-of-Parts QKR acquires Navachab from AGA in US$150m transaction
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